Content for Paper 2 Topical
| CHAPTER 1: BASIC ECONOMICS IDEAS | ||
| 1.1 | Scarcity, Opportunity, Cost, PPC | 6 |
| 1.2 | Classification of Goods and Policies to Deal with These Goods | 17 |
| 1.3 | Economic Systems, Nationalisation, Privatisation | 34 |
| CHAPTER 2: DEMAND, SUPPLY, MARKET EQUILIBRIUM | ||
| 2.1 | Determinants of Demand and Supply | 46 |
| 2.2 | Market Equilibrium & Changes in Market Equilibrium | 48 |
| CHAPTER 3: ELASTICITY OF DEMAND AND SUPPLY | ||
| 3.1 | Types of Elasticity, PED, XED, YED, PES | 56 |
| 3.2 | Practical use of the knowledge of YED, XED, PED, PES | 64 |
| 3.3 | Determinants of PED, PES | 75 |
| CHAPTER 4: GOVERNMENT INTERVENTION IN MICRO ECONOMICS | ||
| 4.1 | Producer & Consumer Surplus and Government Intervention (Indirect Tax, Subsidy) | 84 |
| 4.2 | Government Intervention in Price Mechanism and Price Controls | 91 |
| CHAPTER 5: MODERN AD & AS, MEASURING NATIONAL INCOME & ECONOMIC GROWTH | ||
| 5.1 | AS, AD, Equilibrium level of National Income | 98 |
| 5.2 | Factors, Causes and Effects of Economic Growth | 102 |
| 5.3 | Government Policies to Promote Economic Growth | 115 |
| CHAPTER 6: MONEY, INFLATION AND DEFLATION | ||
| 6.1 | Functions & Characteristics of Money (A2). Specialization and Division of Labour (AS) | 126 |
| 6.2 | Causes, Reasons & Types of inflation | 130 |
| 6.3 | Consequences, Effects of Inflation & Deflation | 139 |
| 6.4 | Measurement of Inflation with Problems | 147 |
| UNIT 7: INTERNATIONAL TRADE | ||
| 7.1 | Classical Theories of Absolute and Comparative Advantage with Limitations | 150 |
| 7.2 | ToT, Determinants of ToT, Effects of Changes in ToT | 155 |
| 7.3 | Methods of Protectionism, Arguments in Favour and against Protectionism | 159 |
| 7.4 | International Economic Integration (not included in AS 2023-2025 Syllabus ) | 165 |
| UNIT 8: EXCHANGE RATES | ||
| 8.1 | Determination of Exchange Rate (ER) | 168 |
| 8.2 | Flexible ER (AS Level). Fixed ER and Managed Floating ER (A2) | 169 |
| 8.3 | Effects of Appreciation and Depreciation of Currency | 175 |
| UNIT 9: BALANCE OF PAYMENT (BoP) CURRENT ACCOUNT | ||
| 9.1 | Structure of (BoP) Current Account | 178 |
| 9.2 | Causes of (BoP) Current Account Disequilibrium. (BoP) Current Account Deficit & Surplus | 179 |
| 9.3 | Effects of (BoP) Current Account Deficit or Surplus | 181 |
| UNIT 10: APPLICATION OF GOVERNMENT POLICIES MACRO ECONOMIC POLICES | ||
| 10.1 | Government Macro Economic Policies | 184 |
| 10.2 | Government Policies to Correct (BoP) Current Account Deficit | 190 |
| 10.3 | Government Policies to Control Different Types of Inflation and Deflation | 195 |
| UNIT 11: REASONS FOR INEQUALITIES AND POLICIES TO REDUCE INCOME INEQUALITIES. GINI CO–EFFICIENT | ||
| 11.1 | Reasons for Inequalities and Policies to reduce Income inequalities. Gini Co–efficient | 202 |
| UNIT 12: UNEMPLOYMENT | ||
| 12.1 | Causes, Types, consequences and measurement of unemployment. Polices to reduce unemployment | 208 |
| UNIT 13: DATA RESPONSE QUESTIONS | ||
| A. | Price Theory | 218 |
| B. | Money and Inflation | 274 |
| C. | International Economics | 304 |
| D.
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New Topics are included in AS Level Syllabus. (These topics are shifted from A2)
i. Measuring National Income. ii. Economic growth and unemployment. iii. Income inequalities (Questions can be asked from these topics in data response) |
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| Cambridge Specimen Paper 2 for 2023-2025 Exams | 400 | |
